Swiss Inflation Slows

Swiss inflation fell at their fastest rate in 50 years in May, dropping 1.0 percent on the year due to lower energy prices, but economists said the central bank has done enough for now to fight deflation.

Consumer prices rose 0.2 percent on the month driven by higher prices for accommodation and energy, which were up 0.6 percent, and for transport which rose 0.4 percent compared with April, the Federal Statistics Office said on Friday.

Prices for oil products dropped 34.2 percent on the year in May. Economists expect annual prices to continue to fall in coming months as the reversal of last year's strong oil and food price increases continues.

Core inflation, stripping out volatile price components like food, beverages, tobacco, seasonal products, energy and fuel, slowed to 0.8 percent on the year from 1.1 percent in April.

Swiss Inflation Slows, Reuters
6/5/2009 8:45:29 AM